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tv   Closing Bell  CNBC  September 15, 2016 3:00pm-5:01pm EDT

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taking a check on suppliers here. a big week for apple but for the week sky works solutions up 15%. these are the stocks we also want to watch. thanks for watching power lunch. >> "closing bell" starts right now. watch this rally. hello everybody. welcome to "closing bell." i'm kelly evans. >> and i'm bill griffith. stocks getting a boost today with the market now up more than 200 points. the dow jones industrial average once again apple a leading driver among dow components. today it is news of iphone 7 plus selling out. >> how about that? >> first run there. we will have more on what is behind the apple breakout. >> are the banks safer today than before the financial crisis? today is the eighth anniversary of the collapse of lehman brothers. maybe not according to a new
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paper from larry summers. he will join us live to talk about the safety of the banks today. republican nominee donald trump giving more details about his tax and economic plan a few hours ago. you saw that live here on cnbc. we will bring you details and get reaction from clinton supporter and former economic adviser during clinton administration, laura tyson. tesla is suing an oil industry executive who allegedly sent an e-mail pretending to be elon musk. >> that is just too weird. it wasn't even the same address but he was expecting the cfo to respond and give information. >> it was close enough that you wouldn't have blamed the cfo if he hadn't looked closely enough. let's start with the apple story rising for a fourth consecutive session with a gain of at least 2%. today it is 3.6%.
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company announcing that the iphone 7 plus has already sold out. the iphone 7 is available in all colors except the most popular, jet black. that is sold out, as well. >> joining us now is will power along with rod canyon who is the co-founder of compaq computers. being familiar with the rise and fall of these great companies what do you think of apple today? >> i think apple is on a roll right now. the 7 has a little controversy with it, but i think it is going to do well. i'm one of those that has bought every new iphone about the time it comes out. i think there is a whole lot of us who do that. >> the early word on iphone 7 was it was just evolutionary and not revolutionary. did the bears get it wrong? what do you make of the sales figures so far of what we are
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getting? >> good afternoon bill and kelly. i think you are right on. i think at least out of the gate the bears seem to have gotten it wrong. there seems to be an element of overpromising and under delivering. we have done an iphone survey in the beginning of august which suggested strong demand. it suggested demand could be above where 6 s and 6 was. it is early but results out of the u.s. look encouraging. perhaps suggest they can grow year over year. >> what lessons would you draw from your experience at compaq when it comes to how tim cook is handling apple? >> i think tim had big shoes to fill. tim was at compaq for a while so hopefully he picked up pointers there. it will be a tougher road to stay in front. i think the challenges are
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different. managing a big company and continuing to encourage innovation is something he will have to focus on. >> do you fault them? apple is a mature company now. it hasn't come up with a revolutionary product in a while although tim cook would tell you it is the apple watch at this point. what do you think they need to do to get the buzz going again? or do they need to anymore? >> i think they need to as soon as they can. you can't always just will that. you can't predict that. the main thing is that when they do come out with a revolutionary product like the iphone and more recently some of the advances they came out with, there is going to be an interim period where they are not as big of advancements. they have to lead the market as best they can. there is really good competition. i think apple is up to the task. >> we have mentioned how much apple has been spending on research and development. what impact are you seeing in terms of the bottom line for the
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next couple of quarters from this launch but then the things that are next in the pipeline to come here? >> that is being spent for products that are not only coming out next year but three to five years from now. it will be a five-year look back for a better indication of that. the apple watch is up by watch standards has been a tremendous seller. i'm excited about the second edition here as that rolls out tomorrow. there is an element of innovation. the new iphones have innovative features. it is just the level of innovation has slowed. the real question will be down the road as we look back. >> what do you make of the stock price and what it has done? our guys look back and this hasn't happened since april of 2009 when the whole market itself was crawling out of what turned out to be one of the great buying opportunities of all time for the whole market.
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now apple is truly leading the charge. >> just gives you a sense for how poor sentiment was. i think some investors trying to wrap up. it should be an indicator that we should be buying the stock. as you look at the road map ahead the annuity element given challenges some competitors are having, there continues to be a wide demand for iphones into the horizon this year and next several years. >> is apple still the pinnacle of silicon valley innovation and success or would you put another company under that designation? >> i think apple is right up there. you have to put google up there. you go outside of there i would include amazon. there are great companies there that are on a role and the technology will allow them to keep doing it if they stay on top of it. >> good to see you again. good luck with the documentary. thank you for joining us today.
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>> thanks for having me. let's get to "closing bell" exchange with the dow up 213 points meg green is with us and so is jonathan corpini and rick santelli joins us from chicago. a lot of volatility this week finally. what do you make of it? >> we finally get what we wish for. we went through this whole long summer period of markets in such a tight range. now we have seen volatility back in our markets. good to see it. i think that is showing participation and shows people are paying attention and now we are out of that summer dolldrum. i think this week has been exciting for the market. we have had a lot of economic data, politics continue to be in the forefront. we continue to talk about what the fed is going to do. i think today's activity is based off of the economic calendar that we have this morning and the retail number that came in under expected and
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the effect that that is going to have on the fed making their decisions on what to do about interest rates. it was on the table. i think it is back off the table. i think it will get punted down the road to 2017. >> shaking my head this morning and i know these markets are higher but is it all for the wrong reasons in the sense that it is like it is just weak enough, the fed is just enough out of the picture and we are back to the place we have been for years where instead of dialogue last week about rates moving up and economy doing okay now we are back to the old slumping along situation. >> it's very provable. if you look between the major central bank meetings we get no ranges at all. historic low volatilities whether treasuries or stock market or our markets or japanese markets that mario draghi had the dog that didn't bark. they were exciting because they
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were excited about weak retail sales. to answer your question, absolutely. it is more than that. the long end of the market is completely dissing central bank policy. weak data and rates are going up because those are the rates they want to control. the fed does like a steep yield curve. a steep yield curve really isn't the kind of curve they want at this point in time because it's steep for the wrong reasons. short rates are going down and long rates are going up on weak data. if the fed really likes that and it is one reason they think they can raise rates, the minute they are in play again it is going to get flat by short end going up. in essence all rates have gone up, not in the direction they hope for. the fact long end rates went up today in particular shows sponsorship of long end and efficacy of central banks is done at least for now in the mind of investors. >> meg, a little birdie tells me this is your birthday. happy birthday. >> thank you very much.
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>> and you worked on your birthday. >> and the market is rallying for me. >> but you are still look for things, for income, you like muni bonds. >> we always do. >> even if rates do rise? >> it's all about duration. if you go and say i want to buy a bond and you buy a long bond you will get killed. you are not going to want to hold it for 10 or 15 years. you have to look at duration because duration will move every 1% that the interest rates go up if you are in a seven duration it will go down by 7%. i don't think the public really understands that when doing it themselves. we use institutional managers and very careful with the yield curve. you buy bonds so you sleep at night. you buy stocks to eat. if you are going into the bond market for comfort you don't
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want to be long. this year risk was good. emerging market debt, high yield was the place. emerging market debt is up over 15%. yet people were saying out. so if you stay balanced and diversified there is a ton of cash around. there is trillions. black rock came out saying something like $70 trillion sitting in cash. that cash is getting 0 or less. the european markets, all the governments are getting nothing from their government bonds even if they buy our treasuries. they're getting like a negative yield when you start building in the currencies. and here is another thing that is really, really shocked me. we know we mentioned yesterday about the pensions are so under funded. why are they buying and buying more bonds? back in '09 they were heavily in stock and increasing bond holdings. i think it's just not doable. you can't get 7% in bonds.
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i think everything is topsy tuvy. i think politics are knocking the socks off of everything and the fed is not going to move before the election. >> we'll see what happens. thank you all. appreciate it very much. enjoy the rest of your birthday. we have breaking news on fiat chrysler. phil lebeaux. 1.4 being recalled. having the capability to deploy in certain crashes. there have been three fatalities and five injuries. it says it is recalling the following vehicles. 2010 sebring mid size. 2011 to 2014 chrysler 400s. the dodge calibers, dodge avengers from 2010 to 2014 and
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2010 to 2014 jeep patriot and compass suvs. this is a huge recall. 1.4 million vehicles. the problem is that there is a condition that may keep the air bag and the seat belt from deploying. >> the shares are barely budging. they are still higher on the session. are we just getting used to this? is it a precaution or something where we expect deeper problems and liabilities to surface? >> it is a possibility. the problem that you have now with all of the auto makers is that they have essentially funneled down the number of parts that are used in vehicles. they have eliminated a lot of parts and there is commonality which means when you have something that goes wrong it doesn't just impact one model over a couple of years. it is several models typically over several years why you have 1.4 million vehicles being recalled. it has been well documented that
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fiat chrysler has had reliability issues over the last six years. this recall may not surprise a lot of people although this is a doozie in terms of recalls that have been announced. >> there are three deaths, five injuries that are tied to that. thank you so much. phil lebeau with the latest information. breaking news on samsung. what is happening here? >> more recall related news from dow jones reporting that u.s. consumer safety agency is planning to announce a recall of samsung phones. we know the consumer products safety commission has been investigating that samsung note 7 which has had problems in terms of exploding batteries. dow jones is reporting that the agency plans to recall a samsung phone. we know that that agency has a press conference scheduled for 4:15 p.m. eastern. we will have that press conference and will be able to bring you anymore news on this issue. obviously, so much reporting on the exploding samsung phones,
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the danger that that poses for airlines and consumers and others. now it looks like the u.s. government is stepping in with a solution of its own. >> this really is unprecedented. i don't know why if you have a note 7 just turn it in. they have to remind everybody just don't use it. don't take it on an airplane. >> the charging seems to be the core issue. samsung says they don't want the phones to charge over 68%. you can imagine cases where people like using the device. i will be careful about charging it. >> think about everybody who charges their phone you plug it in and leave it by the bed side table. you are asleep and not looking at it. a real concern for the u.s. government. they are stepping in and will bring you whatever additional news on this at 4:15 p.m. press conference. >> there have been coordination problems with the recall. thank you so much. >> 45 minutes to go here. dow up 200 points.
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we are down 200 and up 200. today it is to the up side again. s&p 500 is up 23. transports are higher. nasdaq is top performer. >> bad news was good news. up next how donald trump plans to breathe new life into the economy. we will have highlights and reaction to that policy speech he delivered just a few hours ago here in new york. that's coming up. ahead, former treasury secretary larry summers says new laws have not made banks safer. he shares findings of new research in a first on cnbc interview.
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what if a company that didn'make cars made plastics that make tm lighter? the lubricts that imed fuel onomy. even technogy to make engines more efficient. whatompany does all this? exxonmobil, that's who. weworking on allse thgso ke cs better and e le fu. heing you saveey and reducemiions. and u thoughwe just made the ga energyives hveey and reducemiions.
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with the dow slightly losing altitude up 177 points let's check some of the other movers on wall street. goodyear tire & rubber with the company raising dividend by 43% up to ten cents a share.
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down for a fifth day and justice department is investigating sales practices in the wake of wels fargo. in san francisco reportedly opened criminal inquiries into that story. >> donald trump delivering a policy speech at the economic club of new york today. john harwood is in town for the occasion. >> reporter: most of the things that we heard from donald trump were familiar. the message that he has been making about cutting taxes, trying to make america great, kick starting growth in the economy. he said he would do it by getting growth up to 3.5% a year. but the plan is also evolving in ways that are valuable if you care about the deficit and if you care about the income distribution but maybe not so much if you were counting on earlier breaks.
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first of all, take a listen to donald trump on what he would do to corporate taxation. >> one of our greatest job creation measures is going to be our 15% business tax rate down from current 35% rate, a reduction of more than 40%. >> it would only apply to corporations and not individuals filing under the individual code. that saves more than a trillion dollars. he adds a cap on deductions for individuals, 200,000 for married couples, 100,000 for single filers. now, those are things that the high income americans might say wait a minute, you are taking away a benefit you promised me. there are benefits in regulatory reform that donald trump promised that are going to be
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controversial in the campaign but some industries say getting rid of inspection overkill by food production and hygiene regulations. he targeted business. take a listen to this when he went after ford motor company. >> to think that ford is moving its small car division is a disgrace. it's disgraceful. it is disgraceful that politicians allow them to get away with it. >> reporter: i have to add a note from our colleague phil lebeau earlier today. ford is saying they are not shutting down the plants themselves. they are simply shifting production for more profitable light trucks in the productions rather than small cars that are moving to mexico. so they are saying their u.s. investment is not diminished. >> john harwood, thank you very much joining us from new york city. joining us now with her reaction from the other side of the aisle, laura tyson, former chair
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of the council of economic advisers under president bill clinton and no surprise she is a supporter of hillary clinton this time around. welcome back. >> thank you for having me. >> it was a wide ranging speech that he made today. a lot of different topics. overall, what did you think of what donald trump was proposing? >> overall i'm afraid i think it was largely a rehash. the entire discussion of taxes was basically premised on this amazing supply side effects that somehow there was going to be this revolution if you cut taxes you would be able to grow so fast that there would be no deficit implications. his arithmetic was my tax cuts are 4.4 trillion. i'm going to get rid of almost half of that through dynamic scoring because i think my growth effects are going to be so great that at the end of the day we have only added less than a trillion dollars on the deficit and we can deal with
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that through waste, fraud and abuse. that is the most rehashed set of deficit and debt approaches i have heard. it is basically supply side tax cuts proven not to have dynamic effects. >> it seems like the needs in our economy go in cycles. so perhaps in the '80s there was need for supply side reform and maybe in the 90s the needs were different. you don't think there is reason why we don't need this regulatory rollback? >> so here is what i was saying. the supply side tax cuts of the '80s didn't work in the sense of if you remember what david stockman said after the fact we couldn't get spending down and tax cuts weren't enough. i don't think there is any proof in the economics literature. i think most economists agree. >> it is different from the growth issue.
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>> no, but the deficit is related because the plan that trump has put forward here is that a tax cut which is major and will blow a big hole in the deficit he says don't worry about that because we are going to grow so fast that will be undone. does that mean there isn't a need for regulatory reform or tax cuts? i think that actually this is the question about where the tax cuts are needed and for what purpose for what. so if you look at the child care and paid leave policies that came out this week, what you see is the way that donald trump proposes them most of the relief goes to the upper income individuals. if you compare that with hillary clinton's proposal most of hers is broadly shared across the population. so you can target your tax cuts and you can target them for the reason you want to cut taxes and
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for who they should go to. on regulatory reform let me say that i think hillary clinton has herself and can go to her website as you can go to donald trump's website have put out proposals to reform things on regulation. but note major set that donald trump talked about in his report in his speech was about the environment. it was about the clean energy plan that the u.s. has committed to as part of the largest global agreement to address climate change reached. so do you want that kind of regulatory reform? >> let me pull you back to fiscal stimulus. i'm running out of time here. so the fiscal stimulus that donald trump talks about in tax cuts, what we have heard from hillary clinton is about investment in the economy. doesn't that raise the deficit as much as his would? >> i think the major difference is i think this is important for
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people to understand is that every time hillary clinton, secretary clinton makes a proposal to cut a tax or to increase spending she says exactly how she would pay for it. she is not adding to the deficit. she is not assuming that there will be this wonderful growth explosion which is going to pay for the deficit. she is saying here is what i want to spend. here is what i wim pay for it. he is saying i want to have a very significant tax cut. by the way, he says i'm going to reform or repeal obama care and have another health care plan. we have no idea of the cost. he has no education reform. he does not say how he is going to pay for his tax cut except to say that the dynamic scoring, the growth effects are going to be so large that at the end of the day there will only be a little left to reduce and we can do that through waste, fraud and abuse. >> always good to see you. thank you for joining us.
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>> nice to see you. >> laura tyson joining us from california. we have a little less than 30 minutes left in the trading session. >> larry summers has data showing tougher regulations he says are not making banks any safer. running a business is hard. but with your determination, and a domain, website and personal support from godaddy, you'll join millions who have gone from idea to success.
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welcome back. today marks eight years since the fall of lehman brothers and the financial crisis on set. former treasury secretary larry summers saying since the crisis new laws haven't made big banks safer. >> a first on cnbc interview. thanks for joining us. >> glad to be with you. >> by many accounts dodd-frank and other things that washington has done on the banking industry by raising capital requirements by doing the stress test, by restraints on risk management at the banks, that they are safer today than they were eight years ago. where do you disagree on that? >> i think there is no question that the dodd-frank measures to raise capital were very constructive and without those measures we would be in a more dangerous situation today. here is the puzzle that our paper points out.
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if banks were much better capitalized and much less levered than they used to be, you would expect that you would see that their equity would become much less volatile. you would expect their beta to the overall stock market would go down. you would expect that the yield on their debt as it got safer would go down. you would expect that their preferred stock which was backed by a larger quantity of common equity would have a lower yield. and we expected that that is what we would find in the data. what we saw looking at a variety of different samples of banks was that that wasn't the pattern that played out. if you look at market measures of volatility the volatility of banks today is comparable to some measures a little more and
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some measures less than it was prior to the financial crisis. so if you believe in looking to market evidence you don't see the kind of dramatic improvements that i think you would have expected. we think that's important because if you look in 2008 the regulators said that sterns was really well capitalized a week after it failed. so we think that it's a good idea to think very hard about the kind of signals that are being given in markets and that's why we think this evidence is relevant for future debates about bank regulatory policy. >> here is the one question i would have in all of this which is going to a larger debate. to what extent should we trust
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market signals? if we go back to 2006 and 2007 the week of the collapse the equity was trading as if these things were money makers, great investments and head sound capital. if we couldn't trust the market signals then why should we look to the market signals now to tell us that they are, in fact, weaker? >> i think it is an important question. i certainly wouldn't be one who would favor sole reliance on a market signal. i think it is a little bit different to look at the level of a market at a point in time and assume it is accurate than it is to look at a measure of volatility and how much a market fl fluctuates as indication of riskiness of an enterprise. if you look at 2008 it is certainly true that markets didn't see immediately what was happening but if you looked at
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the declines in the market capital as measured in markets for either it was a much more dramatic move than in the regulatory measures. i think we have to look at these in all the ways we can. one big change from early to late from then to now is in the price to book ratio for many financial institutions and what you might call their franchise value or you might think of as their capital in the dynamic sense because it reflects future profitability. that has been very, very substantially eroded in at least probably we believe in part because of low interest rates and in part because of different economic environment and in part because of a whole set of
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regulatory burdens that have been put on banks. and i think we need to recognize they have been working in an opposite direction to the ones that promote capital. it isn't simply a more regulation or less regulation debate that one can have. >> here is the question i have. you seem to be looking at each individual bank and whether they are safer today than eight years ago. i think the question a lot of people have today is is the banking system safer than it was eight years ago as we commemorate fall of lehman eight years ago today and the systemic risks that it posed because of the counter party risks. has dodd-frank and other requirements imposed on the banking system made it safer? that's a big question. >> again, it's an important question. we cite in the paper -- this was
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not our work but the work of others at new york university who attempt to construct the systemic risk measure from market information and they do not see huge reductions in systemic risk. again, it's one question to ask what the change in risk has been and it is another question to ask whether the measures to promote increased capital have been efficacious. i think they have been efficacious and in their absence i think we would be looking at a more dangerous situation today. i don't think that one can simply be complacent and assume that we've now created some kind of system where because we measure less leverage in a regulatory context we can assume that the institutions are far safer. >> i'm also wondering whether regulators are looking at how
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these banks are trading to make policy decisions. what is implied in this analysis about whether there needs to be more or less done in terms of the regulation that we have already seen on the banks? >> again, as i think i said, i don't think you can reduce this to a question of more or less. i think being better capitalized and resolvable, important thiems in regulation. i think some parts of regulatory efforts have operated to remove many sources of income for banks and that has had the perverse effect that when you have reduced future income flow your safety declines. >> and that's what we are certainly seeing now. >> you have to look at the content of regulation and not just simply look at the quantity of regulation.
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i think that's a broad principle of being thoughtful in policy that is sometimes missed in political debates. >> secretary, always good to see you. thank you for joining us today. >> good to be with you. >> eighth anniversary of lehman's collapse cht. >> time for news update. >> here is what is happening. the fda making good on the promise to strengthen its authority over tobacco products. it announced it has issued the first warning letters to 55 retailers for selling e cigarettes and cigars to minors. hillary clinton returning to the campaign trail today. she boarded her plane for a rally in north carolina. she briefly spoke to reporters welcoming them back on board to the plane and says she feels great after her bout with pneumonia. spotify now has 40 million paid subscribers making it the clear leader in the music streaming business. it has added premium users in
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the last six months. the biggest rival, apple music which launched last year and has 17 million paying users. and a new report from the cdc says 31 million americans over the age of 50, about 28%, do not exercise. the inactivity puts them at risk. lack of activity was about 4% higher in women than in men. 29% to 25%. get on that treadmill. >> 50 year olds. >> thank you. see you next hour. 20 minutes left in the trading session here. the dow up 194 points. we have the inside story on the break up with tesla over safety concerns. stay tuned. e? a basketball costs $14. what's team spirit worth?
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auto pilot supplier spilling beans on its break up with tesla. phil lebeau with more on that. >> this has to do with the new auto pilot system. on sunday tesla said it would be upgrading the software. here is what it would be doing
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once it is pushed out. it will make use of radar systems in the vehicles and give the drivers more warning. you put this all together tesla ceo says it should cut the accident rate in half. >> with the improved software we'll end up probably three times safer than a car that isn't on auto pilot. that's my guess. >> sounds pretty good. now the chairman of mobileeye doing an interview saying they are pushing the edge of how safe the system can be. he said it is not designed to cover all possible crash situations in a safe manner. remember, tesla and mobileeye used to work together. they worked together in the first version of auto pilot. now saying tesla's new system may not deliver as promised. take a look at shares of both companies. the other interesting and weird story coming out of tesla involves the company file ag
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lawsuit against a california man who was impersonating elon musk. he senten e-mail from an e-mail address that was similar to what you might expect something from elon musk. he sent it to the cfo of tesla. in that e-mail he was looking for inside information from the company. according to the lawsuit in the e-mail he wrote what is your best guess as to where we actually come in on q 3/4 deliverables, honest guess? no bs. thanks for the hard work prepping for today and then signed it em. >> the imperson ator is cfo for oil firm according to tesla. it says it did not release information. i'm curious as you take a look at shares of tesla, did he want the information for the firm or for himself? if you are a trader and you know the deliverables are short you
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short that hard. >> it is my suspicion. i was going to comment on it. >> this is weird. details. >> see you later. >> 203 points. up next a special treat fast money's will join us with his take on today's market. across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, creative business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. let us help grow your company's tomorrow- today at
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only at td ameritrade. market has been on quite the roller coaster ride. the next guest is describing this as market jitters. >> david rosenburg. >> you guys aren't here. >> i'm here. >> dave, let's start with you and this sort of shakeout that we are seeing in markets. the last week has been incredibly volatile as soon as everybody is pricing for a rate hike today's data come and take the steam out of everything.
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what do you make of the environment we are in here? >> i think if you are talking about today it is a classic case of bad news being good news. we got hit with a slate of soft economic data and nobody is talking about the fed having to raise interest rates. we are seeing first hand if you have your choice between weak economic back drop or fed policy i guess you rather have weak data. that is today's story. the market is no higher or lower. we are range bound. it is a special situation. you have to pick your sectors and companies. but to me the big story is that the market seems to have peaked already and we are at best going to be range trading for the next several weeks and months. >> let me ask you, this kind of volatility that we suddenly have upon us, does it feel more like topping activity or bottoming? >> people are cursing up and down when there is no volatility
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in the market and then you get the volatility. never satisfied. doesn't feel like topping to me yet. i understand what you are trying to get at but it feels as if the grind continues you look over last six, seven years we have seen moves like this numerous times only a week or two later talking about all-time highs in the s&p 500. i think that is what we are headed for. it doesn't mean i believe we should be here but i have seen this song and dance before. unless there are huge missteps i think the rally by and large is still in tact. >> where does this leave interest rates? by the way, in the in box i have everything from people saying we are on the cusp of a recession to saying the consumer is finally kicking into gear here. as we try to make sense of that, where do you think the ten year is headed next? >> i don't think the consumer is kicking into gear. we had a pretty good second quarter and u.s. consumer is sputtering in the third quarter.
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not exactly good news from retail sales as far as back to school seasons. we hit the 1.3% of ten year note. we are up to 170. i think right now the market is very heavy in the sense that when you take a look at positioning in the futures and options there is still a huge on the ten year note. so the buyers for bonds are fatigued. i think that yield activity near term pressured to the up side but within a range. i'm not that negative on rates. near term we can probably trend higher. i am skeptical that the fed is going to go. i think it is a risk for the market place. we are loaded with risks. we have not just fed and bank of japan. we have the constitutional referendum in october in italy. we have u.s. election in november. we go into next year with elections in france and germany. there is all sorts of political
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risks out there. >> i got to go. i would love to ask you more questions. you know how tv works. >> if you got to go i got to go. >> we'll see you later on. >> art cashin said 300 million to buy. >> exhale today. we go to the nasdaq to check in on the tech rally. stay with us. energy is a complex challenge. people want power. and power plants account for morehan a third of energy-lated carbon emissns. the challenge is to capture the emsions before they're released in the atmosphphe. exxonmobil is a leader inarn pture. our team is working to make this tenology betr, more affordabl
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welcome back to "closing bell." we are watching a rally here really powered by apple. nasdaq 100 within half a percent of a fresh record high today on the strength of technology, chips trading on very strong volume, apple on strong volume. i love our viewers one pointing out that apple is under owned by institutions, 60% institutional ownership versus 70% for facebook or google. apple is pulling up skyworks which now is up for the year. >> thank you very much. you won't believe what we have coming up next. stay tuned.
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no mattehow lamehey are. there are bad suggweaid, ann.e... i've alwayayadmired how you st say what'in your head,. without thinking. veryrave yo living oof that los erything. ted. thanyou. yo living oof that loe-coerce business, fedex r and this is not a passive aggressive eironment. i just wanted to say, you guysre doing a great job. what's that supposed to mean? fedex. heing small business simplify e-commerce. fedex. i's a very specific moment, the launch window. we have be very pcise. if we're not ready when the planets arperfectly aligned, th's it. we need really tight tempure contls. engia splisecond t lgcs- coulmeancrapping it all artingver.propulsion, s- mae bourn carame thth's what we're working on right now. fr design through production, siemens technology helpmanufacturers meet critical deadlines. i thinthis' be our biggest flavor yet. whenou only have one shot, you need a whole l of nuity. we're dwning innformation.
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er in all of this, ishe stuff tt maers? stakes are so high, er in all of this, ishe stuyo fanceers? your futur how do you solve this? you d't. your futur you partner with firm that hoadvises governntsis? and the fortune 500, and, can deliver insight person to person, on what matts to you., morgan stanley. we are so late. he wanted to tell you about the acdc concert he went to. the dow chart for the last two weeks we had quiet trading and now volatility. discuss. >> the important thing about today had nothing to do with donald trump's economic speech or the slightly disappointing economic numbers. it was about apple and apple suppliers. the waiting in apple and s&p 500 is so strong that apple was 20 points in the s&p 500 and the
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suppliers, they have been so strong, they are also dragging indexes up. this is an apple-led rally. >> someone at the big board ringing the closing bell. have we mentioned that oracle has earnings coming up. that is coming up next on second hour of "closing bell" with kelly evans and company. see you later. thank you, guys. welcome to "closing bell." i'm kelly evans. a rally day on wall street reversing losses we saw yesterday dow ending higher by 178 points. same move for the s&p 500 which adds 21 to close at 2,147. nasdaq 1.5%, 75 points higher to close at 5,249. oracle finishing the day higher. we are bringing you results as
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soon as they do cross. joining today's panel we have michael santoli back. we have tim seymour, as well. welcome one and all. i hate to put bad news on an up day, but is it true that the reason we are rallying is because data is so bad? >> i don't know that the data was so bad but was basically more of the same message from the economy which is a giveback after a good month prior. i don't think it disturbed the view about the fed. it wasn't a dramatic response in the bond market to that. i don't think it was exactly that. when treasury yields calm down the note sat there. i think that is a prerequisite for stocks doing well. i look at the dow and s&p both containing apple in different weights. it seems like a more mechanical
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move. >> danny hughes, what are you making of it? >> it was like there is nowhere else to go. investors came back to that thought after seeing that data. i think in reality this is really the only place that you can still get yield. i think it is a welcome respite. we were buying basic materials. we also have been buying energy on an off cycle, selling utilities. >> interesting about the materials. what is your point of view on the economy here and how it is going to do and how it is going to hold up? >> i think there is a big question around what is going to happen with the economy and the fact that with the fed being where they have been for so long and interest rates being so low. there is no other place to go except the stock.
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when that stops ticking it remains to be seen. there is a lot of opportunity in underlying that have been beat up. stocks are up 50% and 60% and still paying really good. >> you agree? >> i think part of the reaction of today's market is a function of where we overreacted. the fed last friday had us thinking this was a cycle. i'm not sure we should have traded the way we traded. falling global bond markets is what you should be doing. those markets, those bond markets you are seeing close out as starting to move high skpr running into a wall. to say this was an apple rally definitely not. retail is higher today despite all of the supposedly bad data. emerging markets up almost 2%. to me these are rallying back after being oversold for a
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couple of days. >> oracle results just across the wire. stocks moving lower. let's get to dominic chu with more. >> we have a stock moving 2% to the down side on 213,000 shares worth of trading volume after oracle reports headline adjusted earnings per share up 5 cents slightly below. they were looking for 58 cents a share. oracle revenues at $8.61 billion missing the estimate of $8.7 billion. there are a couple of comments. we are working through to see if there is any forecast. so far they have said they expect to celibate $2 billion worth of software and platform as a service on an annual basis. we are going through the report. it seems like at least from headline numbers a miss on top and bottom lines. that has shares down by about 3%
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on 235,000 shares of volume. >> thank you. tricky thing for oracle is parts of business like cloud that are doing so well are the same parts of the whole index that are its threat. >> so therefore the old part of oracle, the legacy piece is still big there has to be the transition moment when the market says now the story is fully turned in the direction we want to see. as a stock i see it stuck in the middle. now it is trading side ways. if you look at a two year nothing in the numbers seems for a lot of people to change that story. >> and now the next i think a lot things they are overpaying for. people saw the same story. it took a long time for the stock to get out of its own way. we do own oracle. i think this might be a good entry point for investors. >> do you like what they are doing in terms of the turn
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around that they are undergoing here? >> you mean like crazy billionaire at the wheel? i think that there is some truth to that and i think there is a lot of egos getting in the way. you saw sales force ceo speak about how they are the biggest swinging market caps out there. so they are taking shots at each other. i do think you need to own the space. i think oracle is a great name and will continue to be serial acquirerer. >> what is your take on the stock? >> they have no choice to be doing what they are doing. database is immature. so their move into platform as a service is growing dramatically. they are still not in the areas that people need to be. if you look at the stock the valuation isn't cheap. i don't think there is a ton of confidence. the net suite acquisition people are shaking heads a bit.
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it is a stock to be neutral on until proven otherwise. >> looking at dividend yield are they going to have to do more to entice investors? >> in theory that would be one way to go. it has always been kind of a nonyield story. you have the big kind of founder investor in there. a lot of times those are not the stocks that end up being high yielders. it took a long time for microsoft to come around and be part of the allocation strategy. i don't think that would be kind of an immediate rerating to more of a premium multiple or anything like that. >> i wonder we talked a lot about competitive threats and sales force. sales force is in a bit of transition period. is that reflecting that the whole space is maturing? >> i don't think the space is mature at all. that is why there is so much acquisition going on and so much heated activity. that is why they are paying such a premium because they have to get out in front of the
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competition and own it first. i don't think that we will see this sector mature for at least another three to five years. i think they have to be as smart as possible in squeezing out as much as they can. >> this can be such a big name amid the tech rally that apple has sparked. does it throw a wet blanket on that? >> i don't think oracle has been something that has been a pivotal point to degauge market sentiment. it is a company that was a leader. their license revenue is falling. they will get there. but i think this is not something that you need to worry about the rest of the market for. the expectations here is a very easy guy. very low comps. i don't think you are expecting much. i hate to say that but it's all we got. >> broadening back out from oracle to broader market. what do you do in the environment where some analysts
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say the economy is so weak that the dollar will just have to fall here and others who are positioning for a whole new paradigm of rising yields and maybe a stronger dollar. where are we? it feels like we are on something of -- >> we are certainly in a market that may have gotten ahead of itself. the reality is september and october have a number of events where peaking with the election cycle that there is an enormous amount of uncertainty here. we have markets that probably got ahead of themselves. everyone is concerned about valuation. you should be investing in sectors now. in some cases they are very compelling. if we are learning that bank balance sheets are at least as strong as they have been we are in historical evaluations. the other part of the industrial curve where there are rails starting to see pricing power. what markets did is they destroyed the stocks that were expensive because bond yields were low.
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you want to stay in places where cyclical part i think you have opportunities. >> here is a reminder of data. retail sales fell 0.3% last month. producer price index was unchanged. industrial production dropped. manufacturing was weak. the survey basically only prices were a strong point. third quarter tracking figures for gdp have been lowered. what was going on with ulta. >> ulta was a loser today. big trade across early this morning. seems the director sold a chunk of stock. there was an announcement from amazon for on demand beauty product. to me it sounds like an excuse. it's kind of a complicated story. ulta has been about taking market share from department stores in cosmetics and being kind of an experience.
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you go a the stores and rip off samples and you get salon services. >> this is the wall street journal. >> people are going into ulta to get ready for their night out. can amazon deliver that experience? >> of course not. sephora is another one you go in there and freshen up. there was a story on the very same topic. i think what we are really seeing just as we pull back a little bit is a very big seismic shift away from going into the mall, going into the macy's and the clineek counter and really ordering things online. it's the convenience and largely driven by the female consumer who is pulled in 19 different directions and finds it much easier and with technology you can try on different makeups online and can purchase from there. going into the store and that experience is great but you get the value online. >> are you a buyer of amazon?
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>> i am not a buyer but user of amazon. >> you guys are sitting here. thank you for joining us. >> i'm going to freshen up. i'm looking for an ulta here in times square before fast money. there is much more coming up. fast money is sitting down with one of the biggest on sth street. it was a good day in the race for the white house. hillary clinton making her return to the campaign trail after her illness and donald trump delivering a speech to the economic club of new york. a new report finds how many hospitals are being held hostage by hackers. the ceo of security firm mack afee joins us.
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welcome back. you are looking at a live shot of where hillary clinton will be giving a press conference in north carolina as soon as that begins we will bring it to you. donald trump today laying out his economic vision at a speech in new york. john harwood has the latest. >> reporter: it was a day to talk about tax rates and
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economic growth and all the things that donald trump is promising to do to make america great again. on a human level this was the day that hillary clinton returned to the campaign trail in north carolina. in advance of that press conference she talked to some supporters. here is what she had to say about getting back out there. >> i'm not great at taking it easy even under ordinary circumstances, but with just two months to go until election day. sitting at home was pretty much the last place i wanted to be. but it turns out having a few days to myself was actually a gift. >> donald trump didn't cut her any slack as she is coming back on the campaign trail. in his speech he hit her once again on her comment last week saying that half of donald trump's supporters belong in what she called a basket of
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deplorables. here is donald trump. >> the hard working people she calls deflorable are the most admirable people i know. they are cops and soldiers, teachers and firefighters, young and old, moms and dads, blacks and whites, latinos, above all everything else they are americans. >> donald trump went on to say that hillary clinton's economic policy was simply to give out a welfare check. that is a provocative way to frame a race that he has support of majority of whites and he has majority support of nonwhites. >> what do you think on the shifting poll numbers? >> i think if you draw the line it seems as if the market gets a little unsettled when you have trump. it has been a dramatic move. currency markets have reacted in a little more of a jittery way.
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what is interesting to me is you go back four or five weeks and was like hillary was in a walk. it is oscillating back to her seeming like he is at a low point. >> what do you think? >> i'm not sure that there is that much confidence in the polls right now to be honest with you. the polls are just widely divergent. i do think that as we get closer i think we will see maybe more of a tone take place in the market but -- >> do you have a set of investments ready depending on the outcome of the election? >> we don't. as we know a figure head isn't going to be able to make market leaning laws. >> not supposed to. >> there is the congress that is supposed to encourage that to happen. so i don't think that we will. i do think that if hillary is elected president that we won't see much of a change to the status quo. i do think that if trump is
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elected president we will see a change. >> do you think people are taking policy proposals at face value? it seems like this is one area where probably resonates with most investors and yet in a way becomes not much a big part of the dialogue. >> i don't really think anyone is really investing that much time in trying to draw the direct path from these policy proposals to the implications for the economy or electability. it is a matter of issues they want to emphasize and the tone. it is almost like i have to have an economic proposal in everyone of these areas. let me articulate and talk about something. >> we will keep an eye on this press conference. we expect hillary clinton now to be speaking very shortly. we do have a news alert on samsung. let's get back to headquarters on that one. >> we have an official recall now from the consumer products safety commission on samsung's
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galaxy note 7 smart phone. a lot of information here is what we knew already. one notable thing is that on the number of units affected in the recall they say about 1 million. and they go on to describe the phone physically and how consumers if they are not sure what type of phone they have they can check on the back of the phone to see what type of phone it is and whether it is affected by the recall. they mention where it sold, wireless carriers and electronics stores world wide and mentioned various geographies affected, as well, manufactured in south korea and china. they note that health canada's press release is also available on this recall and going into various technical details here. this comes, of course, on the eve of apple's expected retail release of the iphone 7 and 7 plus. this continues to be a difficult
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pr issue for samsung though it is not clear how this might affect expected sales going forward where people who got the phone would defect perhaps to apple. it doesn't hurt apple at this time when they want the focus to be on their new phones. >> john, just a couple of questions on how this works at the consumer level. for the last week or so samsung has come out and tried to keep people from charging a battery fully. now that it has reached this level does that require action on the part of consumers? is it a recommendation? is there compensation that is required or now expected? what does this formalize step mean st. >> i am taking a look at this release to see what is in it. it says consumers should stop using it and power down recalled galaxy note 7 devices purchased before september 15, 2016.
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i don't believe it requires consumers to do anything in particular. samsung has already put out information about how they plan to compensate consumers, whether they want to swap for another phone, give them a credit towards other samsung things. >> hillary clinton taking the stage for a press conference. let's listen in. >> as you heard to give a positive personal speech about my vision for the future of our country and why i so strongly believe we are actually stronger together because i want to give americans something to vote for, not just against. with all the noise and distraction it's important to focus on what really matters and the real choice in this election. this is about the kind of country we want to be, whether we will make the economy work for everybody and not just those at the top, whether we will bring people together or pit americans against each other,
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whether we'll work with our allies to keep us safe or put a loose canon in charge who would risk everything. i'm going to close my campaign focussed on opportunities for kids and fairness for families. that has been the cause of my life. it will be the passion of my presidency. we are offering ideas, not insults, plans that will make a real difference in people's lives and not prejudice and paranoia. as you know my opponent is running a very different kind of campaign. his latest target is a pastor in flint, michigan who respectfully asked him not to use her pulpit for political attacks. he called her a nervous mess. that's not only insulting, it is dead wrong. reverend faith green timmons is not a nervous mess. she is a rock for her community in trying times. she deserves better than that
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and flint deserves better. in fact, so does america. i'm going to keep working as hard as i can to lift up our country and not tear it apart. i believe there is so much more that unites us than divides us. i believe the american dream is big enough for everyone to share in its promise. i am determined to be a president for democrats, republicans and independents, for all americans to really roll up our sleeves, solve our problems and make positive differences in people's lives. so with that i would be happy to answer your questions. >> when you were home reflecting over these last three days i wonder if you did any [ inaudible ] anything you should be doing differently? >> i have always said this would be a tight race from the very
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beginning. i think those are the kinds of presidential elections that we have in america at this point in our history. very proud of the campaign that we have put together i feel like we are in a strong position going into the last weeks. what matters is who registers to vote and who is motivated and mobilized to turn out to vote. i'm going to keep doing everything i can to deliver my message about what is at stake in this election and my campaign will continue to work hard every day to turn out every voter we possibly can. that's our goal and that's our strategy. >> the deal negotiated to reduce syrian violence is less than a week old and reports indicate humanitarian assistance is having trouble reaching the
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city. what should the next step of the united states be? >> this has been such a terrible conflict and the humanitarian cost is incalculbl. i applaud the persistent efforts to try to reach some kind of an agreement with the russians in order to create a period of sesation of hostilities in order to get humanitarian assistance into aleppo and other places within syria. i think whether or not this works is really up to the russians. it is up to whether or not vladimir putin decides that it's time to do what the russians can do to bring this conflict into a period where there can be the
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beginning of political discussions, a hope for protective zone for people who are under relentless assault from the air and a commitment to going after the terrorist groups that pose a threat to everyone. so i'm going to watch this closely but at the end of it it is going to be determined by whether or not the russians decide it is in their interests to pursue this agreement. >> it appeared that your running mate tim kaine may not have been aware of your pneumonia on friday. if you didn't inform him on friday what does it say about your relationship with him in the white house, how in the know he would be on minute to minute developments in your administration? >> my senior staff knew and information was provided to a
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number of people. look, this was an ailment that many people just power through and that's what i thought i would do, as well. i didn't want to stop. i didn't want to quit campaigning. i certainly didn't want to miss the 9/11 memorial as a senator at that time i consider it a sacred moment and i was determined to get there. it didn't work out. so i got the antibiotics up and going, got the rest i needed and we are going on from there. >> in terms of tim kaine how often you talk with your senior relationship whether he would be a real partner. you have seen great partners at the white house and not so great. what do you feel your important
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objectives today were in any way jeopardized by the fact that you didn't explain -- >> look -- i communicated with tim. i talked to him again last night. he has been a great partner and is going to be a great vice president. >> [ inaudible ]. >> we communicated. i am not going to go into our personal conversations. i feel comfortable and confident about our relationship. i really look forward to working with him closely. >> [ inaudible ] has gotten rough and you put up defensives. can you be more specific about what those defensives are and did voters get a glimpse of some
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of that in the way that your campaign handled the events surrounding your illness over the weekend? >> my campaign has said that they could have been faster. i agree with that. i certainly expect them to be as focussed and quick as possible. but i have to say from my perspective i thought i was going to be fine and i thought that there wasn't really any reason to make a big fuss about it. so i should have taken time off earlier. i didn't. now i have and i'm back on the campaign trail. >> [ inaudible ] so why are you making that sort of calculated choice to take time off of the
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campaign trail? what do you think it can get you? >> i think it's important to be constantly reaching out, listening to, learning from leaders. i was pleased to find the time to meet with several of them which i intend to do to hear foreha first hand about their perspective and answer their questions from what i think is happening whether in syria or anywhere else. there is a lot going on in the world. and i have a long standing set of relationships that go back not only to secretary of state and senator but back to first lady. i think it is important to tend to those relationships. i won't be able to have as many meetings because of the press of the campaign as i have had in prior years but i'm looking
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forward to the ones we are scheduling. thank you all very much. >> democratic presidential nominee hillary clinton there in a press conference. john harwood, should we describe it as impromptu? >> i think she was trying to as she returns to the trail try to tamp down the lingering questions about the episode. why didn't she take time off and disclose it? did she tell tim kaine? why was her staff not on top of it? she tried to make a point. she has made it before. i didn't think it would be that big a deal. i should have taken time off. didn't. now i have and i'm back. i think she is trying to sort of put a bit of punctuation point on the story line and get back to the main part of the campaign. >> just bringing in the panel here for reaction. >> i think it is very interesting that this story
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about clinton and why didn't she take time off. if we were in a pretend world and flipped the switch and trump powered through the pneumonia and went to a 9/11 memorial wouldn't the story be a little more how he is such a trooper and how he is such a powerful man. instead, i think this is quite flipped. in my view it is a little bit sexist. >> are you saying we would treat kelly evans and bill griffith differently? >> the male to female ratio in the room? i think i saw two or three guys total. >> editors and assignment desk folks decide who should be up front. i do think it is interesting that people obviously wanted to ask questions about the lead up to the health episode but do it in the context of does this not confirm or say something about what we see as a pattern of perhaps unwillingness to share all details.
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as john says, her effort was i'm healthy right now. i didn't think it would be a big deal. don't penalize me for actually attempting to move on with something. and if it wasn't going to be a big deal why did i have to broadcast it so widely. >> this is her second press conference in the week after not having one since december. >> i think you can trace it to the fact that we are getting down to the final weeks of the campaign. and secondly, the last couple of weeks haven't gone so well for hillary clinton. donald trump has gotten closer. national polls are pretty close. battle ground state polls are pretty close. he has gone ahead in some key states like ohio and florida in some polls. i think hillary clinton is trying to ramp up a little bit the media presence and change the dialogue in a certain way. >> i didn't fully catch a question about syria. there was a question about was it the united nations meeting or what was bogue asked?
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>> there is the united nations general assembly meeting coming up and hillary clinton is going to be i think having meetings around the u.n. general assembly trying to draw contrast with donald trump. she was asked about the new peace accord with russia and praised jim cramohn kerry for w hard to make the agreement. a lot of people are waiting to see whether the deal gets implemented and whether the objections will be overcome. >> again, doesn't seem like a lot of the focus was why wasn't this shared and is it appropriate for something of this level of seriousness. we have just under 60 days left to go until november. so it will be interesting to see. >> thank goodness. >> you are probably wiped out already. john harwood joining us there. hackers have a new favorite
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target and it is hospitals. up next, a brand new report on how bad these hacks are getting and whether your personal, medical records are at risk. a baetball costs $14. at's team spirit worth? (chehe what's it worth totalk to y? what's the value of wa in the ods? not stealth,t things thr capital to crea, morgan stanley is car iaving ov00miles peur. to win, every millisecon matts. d thousands miles ay. in oe car fromirtulyd bull ranywhere. are critical information about y ak a aetting warm. coirmed, danyou ed to co your brakes.
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call liberty mutual. mappg thocns. where we explore. prever we work.iversity. defeating malaria. improvi. turning algainto biofuels. ducing enepoverty in the developing world. dmang cs go further wi less. ing the glob economy and u thought we just ma th. ing the gl♪b economy energy livesere. just ma th. a new report reveals ransom wear attacks are up 128% in the last year. these are attacks in which hackers take information hostage and demand ransom. the report is saying hospitals
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in particular are sitting ducks for this kind of attack which can compromise medical data and result in patients being denied care. chris young joins us now. >> we are looking forward to our future. >> we will be new mcafee. in this case you are raise ag serious issue. we have heard a little bit about the attacks including with the nascar team. they have moved to hospitals now in. >> hospitals have become a target for ransom where among many others. ransom wear has become one of the biggest categories of malwear attacks that we are seeing. i think the reason is hospitals are getting targeted is because what place or business has times in such a critical factor in what they deliver to their
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customer? time is their enemy and ransom wear providers use that time. >> it is because these hospitals sort of can't take the chance and wait on these things getting sorted out that they are vulnerable or do they not have the proper protections and systems in place? >> if you think about it government and banks have been the ones that have had the longest time working on the cyber security problem. hospitals have certainly spent a lot of energy and effort on cyber security. they are not behind the curve but they have become a target for the new type of attack because of the time element and because of the care they provide their patients. >> weren't medical records kind of the last to breach the cloud because so many doctors and health care workers were concerned about that breach for their patients, for all of those medical records which as i
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understand are much more valuable than somebody's credit card, for example. >> what is interesting about malware is it is completely different than traditional breach. in traditional breach somebody uses malware to take information out or sell it and try to monetize it on the open market. ransom wear they never take records away or take them out of an environment. they restrict your access to the information so that you have to pay the malware purveying to reaccess that information. so it is a completely different business model for the attacker. the risk is totally different for those who are being attacked because they don't have to worry. they are not worried about their information going somewhere outside of their organization. in the case of hospital or any other environment that has mission critical systems and technologies they have to be back up and running as quickly as possible. time becomes a premium and
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ransom wear is able to trade on the currency. >> one other big issue is this whole thing with saint jude and whether these devices as they become part of the internet of things are open to being hacked including implantables. have you been able to track information on that? >> the internet of things as we bring technology into the physical space, if you think about a traditionally in computing we would go to a computer and compute. it is separate from what we do physically. as internet of things, as we get technology more pervasively intertwined with what we do in our physical lives, ransom ware will create all new types of challenges. one of my examples i use often is we all drive to work, many of us drive to work every morning. what do you do when you have a connected autonomous vehicle that has ransom ware and asks
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you to pay a fee to get into work. >> i'm carrying my medical devices on a piece of paper. we are going back to the '90s. going to get phones that connect with cords. it's going to be big business. thanks for joining us. >> thank you. >> chris young. a new bill introduced in congress as a result of outrage surrounding the price hikes of epipen. >> that's right. this proposed bill would target what lawmakers are calling aggressive price hikes not only mentioning epipen although that is top of mind. this has been introduced in the senate and house by democrat tammy baldwin and by john mccain. what it would aim to do is say if you are a drug maker and want to increase the price of a drug by more than 10% you need to give 30 days notice before the increase and provide
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justification as well as information on the r&d and marketing, advertising and general profitability of that specific product. they don't only mention epipen. they mention gleevec and insulynn. we reached out to both pharma and bio. fair drug pricing act would not provide information patients can use and say it focuses on isolating research and thinly veiled attempt to build a case for government price hikes. pharma says they -- bio say they don't have specific thing to say about this potential legislation but say it focuses on the list price and not the net price which is the real price folks pay. of course, has the hat been a main question about the epipen. ceo heather brash will be testifying next week. >> richard evans has said that
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both amgen could be exposed here, as well. so there has been a lot of focus on some players in the industry. i wonder who is most exposed to this kind of development. >> a lot of companies have taken more than 10% price increases every year. maybe they do it in a couple different increments. they do it at smaller increases but twice a year. a lot of companies could be at risk of being focussed on here. one analyst asked is this implicit endorsement of 9.5% is okay. just not 10%. that is what brent saunders pledged to do, not raise more than 10%. >> 9.996. >> that would be a source of gravity for where pricing would go. that is one complication in trying to set very specific bright lines and also making somewhat subjective evaluations. >> heather brash will be heading
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to the hill next week. see what she has to say in defense of her decisions. up next, cbs delaying launch of "star trek" tv show until may. ys, at's happening here? hey nico, this is w alert syem but thinkorswim aly lets youe m. create custom alerts for l the ings that are important to u. altsn not on tt,l? you nw, i g g we don'need the k with jt ontap t from the al. cuom alerton thinkorim. ly at td ameritre.
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i'm just guy whoan to buy that trk. weand sustainability goals asool one of our top priorities.mental i definitely rely on pg&e to be an energy advisor. anything from rebates, to how can we be more efficient? pg&e has a number of programs, to help schools save on energy. when i see a program that fits them, then i bring it to them. with the help of pg&e we've been able to save a tremendous amount of energy and a tremendous amount of money. we're able to take those savings and invest it right back into the classroom. together, we're building a better california.
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we have more breaking news from samsung. what is happening now? >> samsung is out with details on when phones that are not likely or possibly going to explode according to them will be available. they say basically september 21, a week from yesterday they say note 7 replacement devices will be available in the united states at most retail locations
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no later than that date. clarifying what steps people can take if they have purchased a note 7. they say they can exchange the note 7 for a new note 7 when they are available at the point of purchase which again should be a week from yesterday. that's six days from now. they can exchange their current note 7 for another samsung device specifically the galaxy s 7 or s 7 edge would be the closest. they would also likely be an amount of refund that the customers do because the note 7 is a bit more expensive on top of that the customer would bealigible for a $25 gift card, in store credit or get a refund all together at the point of purchase if that is what they want to do. samsung has a website where people can go in and make sure they understand exactly what the process is. apple announced today that the iphone 7 plus which is kind of the analogous product to the
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galaxy note 7 is sold out and won't be available at retail tomorrow in any quantities that people are likely to find. it will be interesting to see how quickly apple resupply that product as samsung is getting ready to resupply its larger product after this recall problem, kelly. >> all right, john, thank you, we'll see you again, how that impacts current customers and anyone else who wants the phone. meanwhile, cbs counting on "star trek," but the latest edition of the 50-year-old franchise was hit with a red alert, julia boorstin beaming in with the details. oh, man. >> reporter: well, kelly, cbs has pushed back the premier of its "star trek: discovery" series from early 2017 to may 2017, raising questions about cbs all access, which is the
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direct to consumer app were the show will air. cbs is launching a $10 a month commercial-free version to complement the $6 a month version of the app that includes ads. cbs' les moonves says there's nothing to be worried about when it comes to "star trek," the show's producers simply begged him for more time to get everything exactly right. >> with "star trek," which is the family juewels, i would rather it be a few months late and great than early and not great, because we will suffer for it. so we made the decision to give them their time to make their perfect "star trek," which we are widely anticipating. >> reporter: moonves said when "star trek" along with "the good wife" and "big brother" all launch, that will push cbs ahead of their previous projections ever 4 million subscribers for all access by 2020.
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beaming back over to you, kelly. if we could travel around like that, it would certainly be more efficient. >> is that a camera trick? i wonder how that works. >> reporter: you beamed me in, kelly. you wouldn't want to give away our secrets. >> if you can do it on command, that might come in handy. guys, what do you think the impact of this will be? >> i think it probably brings more attention to the fact that they have "star trek" coming with the delay than it will hurt cbs. i wish julie had had her hair back so we could see if her ears were pointy. shares of novovax down 80%, we'll tell you why. l,uts it the ghe one fofoher? is t ts real a better than the e you golast yr? if we console supplier what's the savgs tre? should weo with th467 hoepower? or ienough good qstion. you ask a loof good queson.. i think we should move you into our new f
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welcome back. a market flash, what's happening, meg? >> we're checking out novembava after the company said its vaccine didn't meet primary or secondary goals. the shares are down 84%. the company holding a conference call at 5:00 p.m. they say they continue to believe there is a path forward
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for this vaccine. the share is down 84% on this failed phase iii trial. >> a shocking move, meg. how speculative were their prospects? did it all hang on this one particular thing? >> this was their most advanced program. certainly a lot of people had high hopes, 2.5 million people have rsc infections every year and there are no approved vaccines. this was a big opportunity and this was a giant trial of thousands of patients. it was for older americans, 60-plus, and they're still pursuing this. however clearly a giant disappointment for investors here. >> it's a massive hit. in fact, you know, today before the close, the stock had a $2.2 billion market cap. >> wow. >> yeah, so it's pretty much decimated. it's going to be interesting to see what the company says, you know, tomorrow and what the reaction is in the marketplace. but it's a pretty massive hit. >> you know, and like a lot of these earlier stage biotech
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companies, it had sold convertible debt, convertible into common shares at much higher levels, that becomes a dead overhang right now. that always becomes a concern when the stock crashes. >> the biotech industry, it's become so popular in the last couple of years partly because there have been so many eugehug successes. >> i think it's a very risky market. as we said before, there's no place else to go. people are taking a lot of risk. biotech, the upside is so monumental. if you have a drug that hits, it can be an incredible boon to an investor. people are willing to take that risk and perhaps they don't even see the level of risk that they're taking in companies like these where they think, you know, this is a phase iii trial, so they kind of are all in. >> they've gotten to this point. meg, you mentioned this was for a potential vaccine for rsv.
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was this something that just this company was working on? >> i'm not really sure what the pipeline for rsv vaccines is, i'll have to get back to you on that. >> i don't expect anyone to know offhand. it seems like if you're one of these companies that's able to crack into a promising area, i can understand why investors can get excited about that. but if no one else is working on it, it's a pretty high hurdle to clear. >> yeah, absolutely. that could be it. i really need to look into just who else might be working in this space to give you a better answer on that, i'm afraid i don't have one right now. >> again, not much known about novavax here other than the hopes people had that certainly aren't playing out. >> on seome level this is alway how the biotech game is played. you have these binary outcomes and people always get and get burned. it almost moves more than you think it could ever possibly go, once you get the numbers. >> like 84 percentage.
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november o november a -- meg, w have more earnings come next week, then there's all the econ data. >> i think we're still fixated on the global yield story. if it remains calm on that front, i think we're okay for a while. tomorrow is also options expiration, four stocks and indexes. >> september is typically a volatile month. as a trader in my past, i can always count on september to be wild and crazy. so especially as we get past the middle of september and we're in quadruple witching tomorrow, which will cause some dynamic changes. >> are people saying the fed is not going to raise rates anymore? >> yes. i think we're pricing out a fed move until next year at least. >> that remains -- i think the
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market doesn't -- i think three months in advance, i think we're edging in that direction, which could be a source of surprise if it doesn't go that way. >> september 21 i think is when that fed decision is due. >> next wednesday. >> thank you for joining me on "closing bell." "fast money" begins right now. "fast money" starts right now. overlooking new york city's times square, i'm melissa lee. the traders on the desk. tonight, it was eight years ago that lehman officially went out of business and with it went wall street. are the banks any safer now? plus tesla's auto pilot called unsafe. phil lebeau is here to explain. shares of oracle are volatile after hours. our own jon fortt is monitoring the headlines. first, the gift that keeps on giving, that is america's favorite stock, pl


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